Facebook bought Instagram for $1B in stock (now $715M) in a costly move for a property with no revenue. The bull case: Analysts thinks the mobile app can generate between $500M to $700M over the next three years to pay for the deal quite neatly. The bear case: Instagram is a fad for 14-year old girls lacking significant purchasing power. Just watch this video and see if a cool billion seems right:
Sources: CNET.com, CollegeHumor.com, Bloomberg
Clark Schultz Blog 